Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: goldsheet who wrote (84747)	4/25/2002 9:42:43 AM
From: E. Charters	Read Replies (2) \| Respond to of 117016

I know of a pretty good situation in North Ontario with a mill that could go to 500 tons per day, 800,000 tons blocked out in resource category at 0.50 ounces per ton, fully permitted, underground workings, headframe in, dewatered, etc.. All it needs is about 6 million CDN and it would be profitable at these prices in the first year. Used to be CDNX. They are having a hard time raising the money because it is hard to show that narrow vein can make money at these prices. But it is hard to spend 257 dollars CDN per ton on even these veins. (4 feet wide) Max cost per ton to mine and mill would be about 125 dollars CDN, and this could come down too. Cost per ounce would less than 100 US. All that holds back gold projects like these are "perceptions" and faulty ones at that. People think that since a few gold mines with grades of say .15 or .20 are unprofitable or since people caught in hedging schemes gone wrong are in trouble, that gold cannot make money. It's the old apples and oranges thing. Neither absolute grade nor absolute costs matter so much as dollars in versus dollars out. 0.05 ounces can win at any gold price if your costs are low, as in heap leach or tailings recovery. In general though, absolute grade levels above 0.30 ounces per ton begin to look very attractive. 0.30 ounces per ton has always been a magic number no matter what the mining situation. 0.50 ounces per ton is very very good grade. Really, they cannot lose in a normal costs structure and their cost structure in this instance is low as infrastructure and capital equipment are already built. And I have located one at 6.0 ounces per ton! It is very small but it doesn't take too much of that sort of stuff to pay the bills. EC<:-}